Business, Finance, Nigerian News
Finance, Nigerian News
The World Bank has predicted that Nigeria will get out of recession and grow its Gross Domestic Product by one per cent this year after plunging into its worst recession in over two decades.
According to the bank,
“Sub-Saharan African growth is expected to pick up modestly to 2.9 per cent in 2017 as the region continues to adjust to lower commodity prices.
Growth in South Africa and oil exporters is expected to be weaker, while growth in economies that are not natural-resource intensive should remain robust.
Growth in South Africa is expected to edge up to a 1.1 per cent pace this year. Nigeria is forecast to rebound from recession and grow at a 1 per cent pace. Angola is projected to expand at a 1.2 per cent pace.”
It also noted in the World Bank’s January 2017 Global Economic Prospects report, growth in emerging market and developing economies as a whole should pick up to 4.2 per cent this year from 3.4 per cent in the year just ended amid modestly rising commodity prices, the bank stated.
Emerging market and developing economy commodity exporters are expected to expand by 2.3 per cent in 2017 after an almost negligible 0.3 per cent pace in 2016 as commodity prices gradually recover and as Russia and Brazil resume growing after recessions.
The outlook was however said to be clouded by uncertainty about policy direction in major economies.
Although the Central Bank of Nigeria, CBN hopefully expected that the exchange rate of the Naira would be stabilised by the influx of the currency from Nigerians in diaspora, the local currency on Saturday depreciated at the parallel market, reaching for N500 per dollar and even more in some places.
The officials had hoped that Nigerians returning home for Christmas would regain at least 25 per cent of what the Naira was exchanging in November.
The Minister for Finance, Mrs. Kemi Adeosun, was even quoted recently to have mandated all financial institutions, particularly the CBN, to find an immediate approach of eliminating the gap between the official rates of naira, which hovers around N316 to N320 per dollar to that of the parallel market.
But it was learnt that the latest free-fall of the naira was caused by reduction of volume of dollar supply to the interbank market by CBN beginning on Monday.
Importers , who assailed most outlets where the Bureau de Change businesses exist, said banks failed to meet their forex demand, and that the banks blamed this on failure of CBN to supply the interbank market enough.
Canadian yoga and leisure apparel retailer Lululemon Athletica Inc reported quarterly profit that beat analysts’ forecasts on Wednesday, helped by higher-than-expected gross margins and sales, sending shares up 10 percent in extended trade. Read more
Crude rose above $55 a barrel as rising prospects of a tightening market, after last week’s OPEC landmark deal to cut production gave speculators impetus to increase bets on higher prices. Read more
Bond yields fell on Friday as solid U.S. jobs data reinforced the view that the Federal Reserve would raise interest rates gradually, while stock and currency markets were cautious ahead of an Italian constitutional reform vote on Sunday. Read more
By Henning Gloystein
Oil markets were jittery on Wednesday ahead of an OPEC meeting later in the day, with members of the producer cartel trying to thrash out an output cut to curb oversupply that has seen prices more than halve since 2014. Read more
Iran and Iraq are resisting pressure from Saudi Arabia to curtail oil production, making it hard for the Organization of the Petroleum Exporting Countries to reach a deal to limit output and boost the price of crude when it meets on Wednesday. Read more
Brazil posted a primary budget surplus BRPSPS=ECI of 39.589 billion reais ($11.6 billion) in October, central bank data showed on Monday. Read more
The dollar saw its biggest drop in almost a month on Monday as a bashing for oil prices on doubts about an OPEC output cut this week left investors reversing “Trumpflation” trades that have gripped markets since the U.S. election. Read more
Niger’s parliament has approved a 2017 budget of 1.809 trillion CFA francs ($2.9 billion), a slight increase from the current year’s 1.807 trillion CFA francs, Reuters is reporting. Read more